The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1887-11-27
THAT HUGE SWINDLE.
The Most Gigantic Fraud of
Modern Times.
THE DIAMOND FIELDS OF 1872,
the scheme WAS Cooked-The
Saited Mines

during June, 1917, as ". ". Mills,
president of the Bank of California, and
one of the richest men in the State, was
seated in his Office, a stranger was
ushered in, who gave his name as Har-
bendig, and after securing promise OF
secrecy from Mr.. Mills, proceeded to
business. He and his partner, Mr..
Arnold, he said, had discovered a
wonderfully rich deposit of diamonds
and rubies, and desired to secure the
aid of Mr.. Mills in developing the
mines. He declined to give the exact
location of the fields, but expressed his
willingness to guide to them any ex-
pert, offered to pay all expenses if the
report was not favorable, and exhibited
a large number of fine stones in proof
of the truth of his assertions. Mr.. Mills
was inclined to laugh at the story, but
the sight of the Jewels and the bearing
and apparent earnestness of Harbendig,
added to the fact that only a few
months before he had let valuable
quicksilver mine slip through his
fingers because of his incredulity, in
duced him to further consider the mat
ter. A messenger was dispatched to a
iapidary of high reputation, who ex-
amined the stones and pronounced
them undoubtedly genuine, the dia-
mOnds little off color, but large and
worth several thousand dollars, while
the rubies, though small, were OF an
excellent quality. w. @. Relston, the
famous cashier or the bank, was called
in and to him Harbendig told his story.
Ralston was al once captiVated by the
prospect of
DISCOVERING a NEW goLCoEDA
in the western mountains and a. once
entered heartily into the scheme. Thus
Influenced, Mr.. Mills agreed to send a
trusted emissary with Harbendig, and
if his report was favorable to furnish
what capital might be required.
After some delay miner of long and
varied experience named Arnold was
selected, and in JUL he set out with
Harbendig 10 examine the alleged dia-
mOnd fields. Their trip was known
only to themselves, Mr.. Mills and Mr..
Ralston. They set out for Arizona and
did not return to San Francisco for
more than q month. On their arrival
they proceeded at once to the bank, and
the miner, wild with enthusiasm, pro-
duCel number of jewels which ne him
sci. had found, and stated, that in his
opinion, discovery had been made
which would reyolutionize the diamond
markets of the world, and make the
hn ~ IL
wealthy beyond their widest dreams.
His report set the fiery Ralaton abIaze
with excitement, and even the more
conservative Mills, who at first had
been inclined to look with q good deal
of suspicion on the plan, had his
doubts removed, and entered heartily
into it.
The next thing to be done was to set
tie the price which Harbendig was to
receive. His terms at first staggered
Mr.. Mills, as he
DEMANDED A MILLION IN CASH
and one-ffth interest in the field as
his share and that of his partner Ar
mold.
Mr.. Mills at first declined to consider
such proposition. whereupon Harlem
dig coolly arose, and said he would see
whether some other capitalists could
not De induced to take the mines. This
and after some consultation it was
agreed to interest several others in the
scheme and form a gigantic corpora
ton, with capital of several millions.
Mr.. Mills accordingly introduced Har-
bendig to William Sharon, Charles
Croker, Peter Donahue and one or
two other moneyed men, told them
what steps he himself had taken, and
asked their cooperation. These gen
lemen were inclined to be skeptical of
the existence of diamonds. and insisted
on a second examination being made
by some one skilled as an expert, as
well as practical miner.
Harbendig himself favored this, and
it was accordingly determined to send
Mr.. Henry Janin. probably at the time
the most famous expert in the country,
to make careful examination of tie
new fields. Still preserving the same
secrecy, Janin and Hsrbendig
SET OUT FOR SALT LAKE,
where they were joined by Arnold,
and went at once to the fields. They
did not return until late in September,
when Mr.. Janin made his report, con-
frming in every respect the statements
previously made, and stating that the
new fields would prove to be- the great
discovery Of the age. Such a report
from such a source WAS regarded as
conclusive, and it was at once deter
mined to pay Arnold and Hsrbendig
the million dollars they asked, and to
organize stock company with q capital
of So .OG0,O 600, $3.50, 600 in stock being
given to thu original discoveries, they
having abated their first demand 20 that
figure.
In spite of the injunctions to secrecy
vague rumors began to fly about con-
corning q great diamond field that had
recently been discovered. 1t was first
believed to be in Arizona and several
parties of prospectors left for that Ter
ritory in search Of the diamond mines.
Among those who heard these srumors
was young man, Clarence King, who
had served under Professor Joseph D.
Whitney on the State geological survey
of California, and since 1855 had been at
tho haoG of tho TTnftad Stafna pcnIooiaaI